🤒 Blockchain Layer 1 is Sick?

Lately, big hacks like PolyNetwork’s $600M loss, Ethereum DAO’s $150M breach, and Cetus Protocol’s recent $200–260M drain on Sui. Is Layer 1 blockchains a bit ill?

Here’s what we got for you today:

• ⭐ 5 Things You Shouldn’t Miss

• 🌡️ Stablecoins Just Got Political - And Profitabl …

• 🚀 Open Interest (OI) - Your Secret Weapon in Leve …

• 🤡 Meme Of The Day

⭐ 5 Things You Shouldn’t Miss

💹 Just on Bitcoin Pizza Day, $BTC.X ( ▼ 0.76% ) hits a new all-time high at $111.8K — so much for “Sell in May”. Over the past few days, many whales had already positioned themselves ahead of Bitcoin’s breakout, opening leveraged long positions worth over $1 billion on Hyperliquid.

🟢 Bitcoin’s market cap has topped $2.18 trillion, overtaking silver and Amazon to become the 5th most valuable asset globally. Altcoins are up 3–15% across the board. And if this trend continues, we could be looking at a green June for $BTC.X ( ▼ 0.76% ) . Over $400M in crypto liquidations in 24h, with shorts making up 57%.

🚀 OKX launches xBTC (a tokenized version of Bitcoin) on Sui, alongside Solana and Aptos — expanding Bitcoin DeFi into new territory. Users can mint directly on OKX, then withdraw to on-chain wallets. Bitcoin-backed assets now make up 10%+ of Sui's TVL. Since Feb 2025, over 600 BTC has flowed into Sui to tap into DeFi opportunities.

🔥 Trump-backed DeFi project pumps BUIDLon ($B.X ( ▲ 11.33% ) ) — a memecoin on BNB Chain — sending its price soaring over 500% in under 6 hours, reaching a peak $282M market cap. Meanwhile, USD1 is emerging as a major stablecoin force, now #7 globally and officially listed on Binance.

👾 Cetus, the top DEX on Sui, just got hit by a $223M exploit. A smart contract bug let hackers drain liquidity, crashing $SUI.X ( ▼ 5.87% ) pairs by 75%+. $160M is frozen for LPs, $60M still missing. Exploit’s patched, trading’s back. Sui chain’s fine. CZ says Binance will help.

🌡️ Stablecoins Just Got Political - And Profitable

If you’re still unsure where the market’s chips are landing — or which sector the U.S. is silently greenlighting — here’s your answer: Stablecoins & RWAs.

In a chaotic macro backdrop, these two have become the stars of U.S. crypto strategy. Why? Because they serve one mission: preserve USD dominance.

1️⃣ Geopolitics Meets Crypto: Trump’s Axis of $USD1

Trump’s Stablecoin Bet — and It’s No Bluff

At the Digital Asset Summit (March 7, 2025), Trump dropped the clearest signal yet: he wants the world’s financial plumbing to stay USD-centric — and stablecoins are the new pipework.

🔥 Congress is now fast-tracking the GENIUS Act, the first federal framework for USD-pegged stablecoins. Dual supervision (Fed + State), reserve requirements, AML, sanctions — regulatory clarity is finally here.

And Trump? He’s not waiting around.

USD1: Trump’s Trojan Horse in Crypto

The Trump-affiliated World Liberty Financial (WLFI) launched USD1, a stablecoin:

• Fully backed by real-world assets

• Listed on Binance - Isn’t just listing — they’re deploying LISTA liquidity to support USD1

• Backed immediately by $2B from MGX (a Dubai mega-conglomerate tied to Binance)

• Justin Sun is integrating USD1 on TRON ($TRX.X ( ▲ 0.57% )), making it chain #3 after ETH & BNB

The playbook is clear:

→ Trump + WLFI + Binance + Dubai + TRON = the new stablecoin axis

→ USD1 is being positioned to dominate — and with GENIUS Act backing, it could be the first “legally blessed” stablecoin in U.S. history

Meanwhile: Traditional Finance Wakes Up

Per WSJ, big U.S. banks (JPMorgan, BoA, Citi, Wells Fargo) are in early talks to issue a joint stablecoin. It's still conceptual — but that they’re even talking? 🔥

The message: Wall Street doesn’t want to get left behind.

The Global Mirror: Hong Kong Moves Too

On the other side of the world: Hong Kong just passed its own stablecoin bill, expanding crypto licensing and formalizing the role of asset-backed tokens in finance.

🚨 The Bigger Picture:

• USDT’s dominance? On borrowed time.

• $USD1 could become the state-sanctioned center of crypto liquidity.

• Once GENIUS Act passes, every project may start orbiting USD1 — willingly or not.

• This is not just market structure — it’s geopolitical design.

The US doesn’t want to kill crypto. It wants to control it — with USD-denominated rails.

Stablecoins are the weapon. RWAs are the collateral. USD1 is the flagship.

2️⃣ Stablecoins: A Sector Growing on Its Own

Stablecoins = digital dollars.

They’re pegged 1:1 to real-world assets (usually USD), giving you price stability while still living on-chain.

No crazy BTC-style swings. Just instant, borderless, programmable dollars that anyone can use - anytime, anywhere. Unlike banks, stablecoins don’t close on weekends. They don’t freeze for holidays. They don’t require permission.

By early 2025, stablecoins surpassed $200B in circulation, driven by $USDT.X ( ▼ 0.04% ) and $USDC.X ( ▼ 0.0% ) primarily.

Yield-Bearing Stablecoins Are Heating Up 🔥

These aren’t your typical static dollars. These bad boys keep their value steady and pay you interest. So, they’re way more appealing than your typical stablecoins, turning into a smarter, income-generating asset - passing through yield from T-bills, DeFi, or other sources.

📈 Grew from $1.5B → $11B in just 18 months
📊 Market share jumped from 1% → 4.5%

With 5-12% yield ranges and regulatory clarity, this segment is poised to explode.

Stablecoins are evolving from “store of value” → income-generating assets 💸

The S-Curve Has Started - Welcome to the Boom Phase 🚀

We’re at the inflection point of the stablecoin adoption curve.

→ Regulation is here
→ Better products are live
→ Institutions are entering
→ User demand is rising fast

This is where growth goes vertical. Expect:

⚡ Bigger issuance
⚡ More platforms
⚡ Explosive TVL inflows

Projections: The Next 18–24 Months 📊

🔹 Total stablecoins: $250B → $500B
🔹 Yield-bearing: $11B → $75B
🔹 Yield-bearing share: 4.5% → 15%

That’s a 7x jump in interest-paying stablecoins

🔥🔥 Trader Take: Trump’s moving fast in stablecoins because it’s huge money. With the GENIUS Act, USD1 could be the first “officially approved” stablecoin, becoming crypto’s new center. Other projects will follow its lead, and USDT might lose ground.

Crypto aims to escape the USD, but the U.S. is using stablecoins plus RWAs to stay in control and profit. Trump’s USD1 is front and center, turning stablecoins into a geopolitical tool.

🚀 Open Interest (OI) - Your Secret Weapon in Leverage Trading

🤡 Meme Of The Day

We read your emails, comments, and poll replies daily

Hit reply and say Hello – we'd love to hear from you!

Like what you're reading?

If yes, you'll love what’s happening inside The Crypto Fire Telegram version - our Telegram group where is no hype, no pressure. Just real conversations, insights, latest news, more trading analysis, entry,... and a few memes along the way. Jump in here → t.me/TheCryptoFireTG

And if you’ve got a friend deep in crypto (or just getting started), feel free to forward this to them. They can sign up here.

Cheers,

The Crypto Fire

This newsletter is for informational purposes only and should not be considered investment advice. Traders should conduct thorough research, understand the risks, and carefully evaluate their decisions before investing in cryptocurrency.